How Pfizer Changed Its Organizational Structure to Better Meet Industry Needs- Business Source


Following up on Paper #2, I will be utilizing the information I gathered to discuss Pfizer’s new organizational structure. In 2012, Pfizer began the process of drastically reducing its size to focus more on the company’s R&D business unit. In 2012, the company sold its Nutrition business. In 2013, the company spunoff Zoetis. Most recently, the company announced an organizational restructuring that involved splitting itself up into three different operational units: Two Innovative business segments and one Value business segment. The first Innovative business segment will focus on products that retain patent protection past 2015. The second Innovative business segment will consist of Vaccines, Oncology, and Consumer Healthcare. Lastly, the Value business segment will focus on products that lose exclusivity before 2015 and provide strong consistent cash flow.

My use of Pfizer as an example of organizational restructuring will help provide concrete evidence that rising R&D costs are causing organizations to restructure. The following sources that I will use are below:

Pfizer to Create Separate, Internal, Global Innovative and Value Business Segments

Pfizer: Dearth of New Products and Future Challenges

Pfizer Completes Sale of Nutrition Business to Nestle

Pfizer Will Reward Shareholders With Zoetis Spinoff

Pfizer Plans Offering to Pare Zoetis Stake

 

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3 thoughts on “How Pfizer Changed Its Organizational Structure to Better Meet Industry Needs- Business Source

  1. Yes, you are correct. These are business sources. And totally appropriate to use. We need to refine your focus somewhat, however. Paper 2 was about the ethics of the spin off plan.

    The white paper needs to address more of a policy area.

    Now, to get to that, it may be worth asking why Pfizer is doing this. Is it symptomatic if larger issues in pharmaceuticals? Heath care companies? Innovation in life sciences?

    In other words, what is or are the problem that policies could affect? Do there need to be changes in laws? In best practices across the pharma?

    Maybe you can address how changes in life science, or funding for life science, or the impact of discoveries around genetics, proteins, or something else are changing the business model?

    An issue I have heard some raise is that bigger pharma firms spend too much on advertising and also on trying to push patients to demand certain costlier medicines form their doctors. So, approaching problems with direct to consumer marketing might be an area?

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